Public and Private Roles in Health

P. Musgrove

World Bank - Discussion Papers from World Bank

Abstract: The appropriate role of the state in health is complex both in economic theory and in practice. Theory identifies three reasons for state action: public goods or services with large externalities (involving efficiency); poverty (involving equity); and failings peculiar to insurance markets for health care (where both inefficiency and inequity arise). The insurance domain presents the most costly and difficult problems, and explains why -- in contrast to other sectors -- government tend to finance an increasing share of health care as incomes rise.

Keywords: HEALTH; PUBLIC GOODS; GOVERNMENT (search for similar items in EconPapers)
JEL-codes: I10 I11 I18 I19 (search for similar items in EconPapers)
Pages: 79 pages
Date: 1996
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Citations: View citations in EconPapers (16)

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Persistent link: https://EconPapers.repec.org/RePEc:fth:wobadi:339

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